Reliance Industries chairman Mukesh Ambani on Thursday addressed the much-awaited annual general meeting of the company. The AGM is always an event that is watched for high-profile announcements.
The company has seen declining profits for two straight quarters and is sitting on a pile of cash, even as its earnings from the core refining business have fallen.
Here are the highlights from Mukesh Ambani's speech at the meeting:
- Transformation at RIL is about institutionalising the capabilities of our people.
- Transformation will create a robust process-driven organization that will outperm the global years.
- Partnerships will be an important feature of future growth.
- Internation biz environment more challenging today than any time in history.
- Gro-political changes leading to supply challenges have added to our troubles, but despite this RIL has grown stronger.
- High domestic inflation, adverse forex movements and slowdown in growth have impacted the company's performance.
- India is poised to be one of the growth engines of the world.
- RIL's investments in petchem will meet India's growing needs.
- New investments in communication will create new waves of growth for the company and the country.
- We have created value by consistent profitable growth in the company.
- Lower-than-anticipated production have had an impact on the company's profits.
- RIL is reinvesting cash flows in new projects, which will fuel growth over the next few years.
- Petrochemicals has been the foundation of the company's growth over the last 34 years.
- Reliance has delivered 21.6% CAGR since its IPO in 1977-78.
- Rs 1,000 invested in IPO has grown to Rs 7,78,215.
- Revenues have grown 28% year-on-year in 34 years.
- Profits have grown 30% in 34 years.
- Reliance has recommended highest ever dividend pay out.
- Reliance meets 2 per cent of the world's needs of transportation fuel supply.
- Making a major investment to further strengthen the refining business.
- Have bought back 2.7 cr shares worth Rs 1929 cr
- Reinvesting cash in new projects, new businesses
- Also manufacturing surfactants, several other value added petrochemical product
- Petrochemical capacity now stands at 15 mn tonnes
- Integration with refinery in Jamnagar provides feedstock advantage
- Setting up of gas cracker in Jamnagar will be largest in the world
- Implementation of all projects in full swing
- Reliance has 2.5 million tonne polyester capacity in India and Malaysia
- Reliance continues to be the most profitable large polyester producer in the world
- Reliance is increasing its polyester capacity by 1.5 million tonnes in the next two years
- Reliance also enhancing intermediate capacity to capture full value in chain
- Reliance will be the sole producer of poly-butadiene rubber in India
- Reliance operated refinery at 109% last year in a most challenging environment in recent times
- Gross refining margin of $8 per barrel was amongst the highest in the world
- We are building the largest gasification facility in the world to convert petroleum coke to synthetic gas
- Synthetic gas will be used as feedstock and fuel for our integrated Jamnagar complex
- Petcoke gasification will provide competitive fuel and reduce volatility of earnings
- Petcoke gasification will increase refining margins by 30–40% within next three years
- Expect to have 1 crore shopping with Reliance Retail every week in the next 3–4 years from the current 30 lakhs.
- Production from D1 and D3 fields been far more difficult than anticipated.
- Target to achieve total production of 60 million cubic meters of gas by 2015.
- Total investment in the shale gas business exceeds $ 3.5 billion.
- In apparel segment, Reliance trends has largest chain of stores in the country.
- Reliance Digital has tripled the number of stores, expanded product offering and is the fastest growing digital retailer in India.
- Reliance is partnering with kirana and other small shopkeepers.
- The partnership leverages Reliance Retail's supply chain, large assortment of products, sourcing capabilities and ability to supply at competitive price.
- Reliance Retail brings best international brands to India for aspiring young customers.
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